Toyota refuses partnership with Tesla

06/05/2017

Toyota Motor Corp., a Japanese automaker, has discontinued its business and capital partnership with Tesla Motors Inc., having sold its entire stake in the US manufacturer of electric vehicles, the Nikkei writes.

Neubie via flickr

Toyota's decision suggests that Japan's largest automaker does not see the need to unite with Tesla in the development of electric vehicles, as it is increasing efforts to develop them independently, sources say.

Toyota and Tesla surprised the world when the two companies announced an alliance in May 2010 with a plan to acquire a 3.15% stake in Tesla for 4.5 billion yen ($ 40.5 million) to promote the joint development of electric vehicles.

Since then, Toyota has manufactured a sports electric car with batteries made by Tesla. The Japanese company has not launched their mass production.

According to sources, Toyota sold part of its stake in Tesla in October 2014 and got rid of the rest by the end of last year. Toyota’s spokesman commented on this step as "part of a regular review of business alliances."

Toyota is considered the leader in the development of fuel cell vehicles and hybrid vehicles among the cars of the future generation, while, according to some reports, the company lags behind competing automakers in the field of electric vehicles.

Last November, Toyota announced launching a new unit under the leadership of its president in order to strengthen and develop the production of electric vehicles.